Model train firm Hornby issues profit warning

TOY firm Hornby is steaming into the red for its current financial year after trading was buffeted by lengthy supply chain difficulties with a Chinese model railway maker.

Shares in the group reversed 3.7 per cent to 77.5p on yesterday’s profits warning. Hornby said it will pay the Chinese supplier £600,000 for a “managed exit” from their agreement next July, but noted that the impact on sales will wipe out its underlying profits.

A further currency hit will leave it with £1 million of losses overall for the year to end-March, the Margate-based group said.

Hornby, whose brands also include Airfix and Scalextric, said sales over Christmas were “reasonably strong”. Chairman Roger Canham said: “I am confident that this draws a line under this painful period of the group’s recent trading.

“From here we will have a more solid supply base to grow our market share in the UK and European markets.”


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Hornby’s products for the year ahead include model kits to commemorate the First and Second World Wars.